Return to 20 years of property prices on the road ahead
Hong Kong’s return to 20 years, residential property prices soared, the public do not eat or drink nearly 16 years before the home, a new generation of cars seem out of reach. But the high property prices, the funds are still hugging the Hong Kong Tower, property prices are high, home buyers difficult to believe that the short term is difficult to improve.
In 1997, the financial turmoil hit Hong Kong property market, property prices fell from the peak of 6 years, down 70%, property prices led to a sharp increase in negative equity cases, negative assets in 2003 was as high as 106,000 cases, accounting for 22% The
20 years later today, the past seems to have forgotten, property prices have long been breaking the historical high of 97 years. According to the Rating and Valuation Department, the current property prices are nearly 90% higher than those in 1997, and the first installment is for two generations. According to the HKMA, the ratio of property and income has risen to 15.9, which is higher than the peak value of 14.6 in 1997. That is to say, the general public will not be able to wait for nearly 16 years before they can successfully buy their own homes.
Low-income earning is relatively healthy
If the key data from the property market to analyze the current situation with the 97 years there are quite different. At present, the ratio of supply to housing (contribution to household income) is about 71.5%, which is lower than that of 106.8%. Although the property price is high but the burden ratio is reduced, the reason is that in addition to the high property prices in the year, the interest rate is also high. In 1997, the actual interest rate was 10% (P), and the actual interest rate was 1.71% , The gap is very large.
And the public income also increased significantly in the first quarter of this year, the median monthly household income of 2.6 million, compared with the third quarter of 1997 18,900 yuan by 38%. Moreover, the current average mortgage age is extended to 26.5 years, more than 18.4 years. In the event of a decline in interest rates, an increase in income and an extended average mortgage period, the reasons for the fact that the current property prices are higher but lower for the year.
In addition, in recent years, mainland funds have become an important element in supporting the property market in Hong Kong. The Mainland and the consortium have swept through the residential property and land. Many of them have been purchased by Mainland funds, together with local users and investors. Sought after, the property prices are still more and more. In view of the sharp rise in the property market, the Government has launched a number of rounds of demand management measures in recent years, including additional stamp duty, buyers and double stamp duty, tightening about more than one, the HKMA has 8 degrees to tighten the mortgage. The Financial Secretary, Mr Timothy Chan, has repeatedly stressed that the property market in Hong Kong is in danger and property prices are prone to a callback. The public is willing to wait for the public to be cautious and capable of doing so. However, the Government, whether it is a move or export surgery, the property market is still limited, property prices continue to record high.
Shi Yongqing: the property market is difficult to burst short-term pot
Property prices hit the peak, home difficult, but for many young people, home is still a very important goal of life, they each seek their own, hoping to get on the train as soon as possible. 80 after Michael hard work to save money, by adding the parents of the property, plus their savings, although the building will be a little hard, but also successful home; another 90 college graduates Mandy, although temporarily unable to buy, but I do not feel desperate for the car, I believe that property prices will still fall in the long run, or can fall to an affordable level, their efforts to save money, the target in 10 years after the successful home buyers.
The current property prices and rents are at its peak, experienced the property market for decades to fall the Central Plains Group Chairman and President Shi Yongqing that the higher competitiveness of the place, property prices, rents will be higher, it is inevitable, the public burden Inevitably eat heavy. He believes that the current property prices, although the record high, the property market is still difficult to burst in the short term, including the lack of housing construction in Hong Kong, buyers over-lending and other issues, property prices are not out of line with the purchasing power of investors, the property market is difficult to repeat 97 years Burst the same mistakes.